If you are worried about your debts and looking for information on bankruptcy, we can help. As the UK’s number one debt charity, we can offer all the bankruptcy help and advice you need.
Bankruptcy information
Bankruptcy is a legal process for people who are insolvent. This means your unsecured debts exceed the value of your assets (including property and vehicles). When you are declared bankrupt, your unsecured debts are written off, allowing you to make a fresh start.
Personal bankruptcy usually lasts 12 months. While you are bankrupt you are restricted from borrowing any more money.
There are also a number of restrictions for those in business. For instance, you cannot promote, form or manage a limited company without the court’s permission.
Bankruptcy payments
To file for bankruptcy, a total fee of £700 is payable; £175 goes to the court and £525 goes to the official receiver.
If you have disposable income after paying your household bills and essential living expenses, you might also be required to pay a monthly amount to the official receiver for up to 3 years. This money is distributed between your creditors.
Your credit rating will be severely affected by bankruptcy and it is unlikely that you will be able to get credit for several years.
Bankruptcy help and advice
If you need bankruptcy help, we can give you more information and advice completely free of charge and in confidence. Our online counselling service, CCCS Debt Remedy, can identify whether bankruptcy is suitable for you or if there is a better debt solution for your circumstances.